There's a 58% Chance of a Fed Rate Hike in October. These Are Stocks to Buy Anyway.
The Federal Open Market Committee (FOMC) may increase rates in October, but some stocks will benefit from this decision. UnitedHealth Group, JPMorgan Chase, and Chevron are among the stocks to buy even if a rate hike is right around the corner.
Intelligence analysis by Llama
The article discusses the potential for a Fed rate hike in October and the stocks that will benefit from it. UnitedHealth Group, JPMorgan Chase, and Chevron are highlighted as stocks to buy despite the potential rate hike.
Imagine you have a savings account and a credit card. When the interest rate on your savings account goes up, you earn more money. But when the interest rate on your credit card goes up, you pay more money. Some companies, like UnitedHealth Group and JPMorgan Chase, will benefit from higher interest rates. Other companies, like Chevron, will do well even if rates don't go up.
Analysis
UnitedHealth Group's Resilience Amid Rate Hikes
UnitedHealth Group's (UNH) turnaround appears to be the real deal. The health insurance stock is up more than 20% year to date. UnitedHealth's earnings jumped roughly 54% year over year in the second quarter of 2026. Management raised the company's full-year guidance due to the improving outlook. UnitedHealth is relatively rate-neutral, but its momentum should continue no matter what the Fed does.
JPMorgan Chase's Net Interest Income Boost
JPMorgan Chase (JPM) ranks as the world's largest bank by market cap, so it stands to benefit more than most from higher rates. JPMorgan's net interest income totaled $25.6 billion in Q2, up 10% year over year. Should the FOMC raise rates in October, look for this financial services giant to make even more money.
Chevron's Business Amid High Fuel Prices
The Fed may be forced to raise rates due to resurging inflation, primarily driven by higher fuel prices. Chevron (CVX) is no exception, with its shares up more than 20% year to date. Chevron's business should be humming along nicely in such an environment, making its stock attractive to investors seeking safe havens amid rising rates.
Key points
- UnitedHealth Group's turnaround appears to be the real deal.
- JPMorgan Chase's net interest income totaled $25.6 billion in Q2, up 10% year over year.
- Chevron's business should be humming along nicely in an environment with high fuel prices.
- The Fed may be forced to raise rates due to resurging inflation, primarily driven by higher fuel prices.
- UnitedHealth Group, JPMorgan Chase, and Chevron are among the stocks to buy even if a rate hike is right around the corner.
If the Fed raises rates in October, UnitedHealth Group, JPMorgan Chase, and Chevron may continue to perform well. Their businesses are resilient and will benefit from the higher interest rates.
If the Fed doesn't raise rates in October, Chevron's shares may decline somewhat if oil prices fall. However, the stock is still a solid long-term pick.
